Eurozone: Solvency of banks continues to improve – BNP Paribas

Thomas Humblot, analyst at BNP Paribas, suggests that the European Union’s major banks have continued to strengthen their solvency and have improved their ability to absorb a large-scale financial shock and to resist its economic consequences on their own.

Key Quotes

“The CET1 ratios of the EU’s major banks are higher than they were during the EBA’s previous stress tests, both at the starting and end points of the shock, even though the shock itself was more severe.”

“There were significant discrepancies between the results of the various banks. The results highlighted the banks’ differing sensitivity to the adverse scenario, related in particular to their business mix and/or their international exposure.”